For the first time in history, gold crossed $3,500 and reached an all-time high level of $3,500.33. But since then, there has been selling pressure at higher levels, and the gold price is currently trading at $3,323. In India, the gold rate today is Rs 95,890 after having made an all-time high of Rs 98,713 in the spot market (Ahmedabad) on April 22. In some cities, the spot price touched Rs 1,01,000 to create a historic record in the Indian market.
Gold is up more than 25% in less than four months in 2025, and it has gained 42% over the last year, with a 10% return in April alone.
The current spike in gold is due to declining investor confidence in dollar-backed assets, which has caused them to shift to gold. But, the almost vertical spike in gold price had a shocking reversal on Tuesday and Wednesday as gold prices fell just after creating a record high.
“Gold prices fell more than 3% on Wednesday after reaching $3500, and the market appears to have peaked in the short term. Markets are still digesting President Donald Trump’s softer tone on the US-China trade war, as well as his turnaround on wanting to fire Federal Reserve Chair Jerome Powell,” says Dr. Renisha Chainani, Head – Research at Augmont.
Gold was rising on the back of the economic uncertainty arising from the Trump tariffs. After Trump’s statement that the US could go slow on China and that he is no longer after Powell’s exit from the Federal Reserve, equity and bond markets recovered. Even dollar strengthened, leading to a fall in the gold price. Dollar strength and gold price are inversely correlated.
Gild thrives on uncertainty and economic downturns. When the existing uncertainties around the US-China trade war appeared to be subsiding, an immediate selling pressure in gold was witnessed.
Gold price has retreated from the all-time high levels, but is still looking strong. “Although recession worries have subsided, the global economy has already suffered significant harm, and rebuilding trust in the United States as a dependable trade partner will take time. In this context, gold is projected to be highly supported,” adds Dr. Chainani.
On Thursday, gold is back with a bang and is up 1% to trade around $3,323,
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